Rate Fears Sink Stocks, 8/5/05
Stocks closed lower Friday and had a losing week overall as traders worried that a red-hot labor market will prompt the Federal Reserve to keep hiking interest rates.
Greenspan Pushes All the Right Buttons, 8/9/05
Tuesday morning, NASA executed a safe landing for Space Shuttle Discovery. Tuesday afternoon, the market seemed to believe that the Federal Reserve, which tapped on the monetary brakes for the 10th consecutive policy meeting, will be able to do the same for the U.S. economy.
Such faith in the Fed helped the Dow Jones Industrial Average gain 78.74 points, or 0.75%, to 10,615.67, and pushed the S&P 500 up 8.25 points, or 0.7%, to 1231.38. The Nasdaq Composite gained 9.8 points, or 0.5%, to 2174.19, continuing its recent trend of relative underperformance.
Yeah, me neither.
So in the span of 2 business days, we go from stocks plummeting due to fears of interest rate increases, to stocks rising after interest rate increases. Did I miss something, or do Wall Street analysts just make this shit up as they go along?